US Intensifies Export Controls on Russia… Government Vows Full Effort to Minimize Domestic Impact

Biden: "The Invasion of Ukraine Has Begun"... Announces First Sanctions Against Russia
(Washington AP=Yonhap News) On the 22nd (local time), U.S. President Joe Biden announced the first sanctions targeting Russia during a White House speech, stating that Russia's invasion of Ukraine has begun. President Biden declared that two Russian banks would be fully cut off from the West, blocking their access to Western financing. He also approved the movement of additional U.S. troops and equipment to the Baltic coastal countries. Earlier, Russian President Vladimir Putin recognized the independence of two separatist regions in eastern Ukraine and ordered the deployment of Russian troops. February 23, 2022
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[Asia Economy Sejong=Reporter Lee Junhyung] As the United States has announced strengthened export control measures against Russia, the government has expressed its commitment to making every effort to minimize damage to domestic companies.

According to the Ministry of Trade, Industry and Energy on the 25th, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced enhanced export control measures against Russia.

Specifically, the U.S. will independently control exports of 57 items and technologies in seven sectors including semiconductors, computers, information and communications, sensors and lasers, navigation and avionics, marine, and aerospace to Russia. Additionally, when reviewing export license applications for items requiring permission for export to Russia, a policy of denial will be applied. However, exports to Russia for aircraft and passenger aircraft safety, humanitarian purposes, civilian communication equipment, and operation of subsidiaries of allied countries within Russia will be permitted after case-by-case review. Forty-nine companies related to military use, including the Russian Ministry of Defense, have been added to the Entity List, restricting all strategic goods exports.

For third-country products produced using certain U.S. technologies and software (SW), extraterritorial controls (Foreign Direct Product Rule, FDPR) will be applied. FDPR is a regulation used by the U.S. to sanction China’s Huawei, prohibiting the export of products made using U.S. semiconductor technology or equipment and extending the ban to products made in third countries using U.S. technology. General consumer goods not listed on the Commerce Control List (CCL) are excluded, but FDPR applies to consumer goods if their end-use is military. The European Union (EU), United Kingdom, Australia, Japan, and others, which have adopted export controls similar to the U.S., are exempt from FDPR. The U.S. plans to add more countries to the FDPR exemption list in the future.

Smoke Rises from Air Defense Base in Mariupol, Ukraine, Following Russian Military Bombing
(Mariupol AP=Yonhap News) On the 24th (local time), smoke was seen rising from an air defense base in the southern Ukrainian port city of Mariupol due to a bombing believed to have been carried out by Russian forces. On the same day, Russian troops launched a full-scale invasion of Ukraine simultaneously from the east, south, and north. 2022.2.25
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In response, the Korean government held a meeting of related ministers chaired by Deputy Prime Minister Hong Namki on the morning of the same day to share key details regarding the U.S. export controls. The government also reviewed and discussed the specific level and content of its participation in the export controls. Based on the U.S. Department of Commerce’s announcement, the government plans to conduct a thorough analysis of the impact on domestic industries and swiftly pursue consultations with the U.S. to minimize export uncertainties.

The Ministry of Trade, Industry and Energy also held the first meeting of the Trade Security Task Force related to the Russia-Ukraine situation and an export control briefing session, chaired by Yeo Hanggu, Director-General for Trade Negotiations. At the meeting, Director-General Yeo shared export control-related information with relevant organizations such as the Korea International Trade Association and the Korea Trade-Investment Promotion Agency (KOTRA), as well as major industry associations, and listened to industry difficulties.

Director-General Yeo said, “Please actively utilize the Russia Desk within the Strategic Items Management Office operated by the Ministry of Trade, Industry and Energy to resolve difficulties faced by companies exporting to Russia,” and added, “We will make every effort to minimize the impact of U.S. export controls on domestic companies.”

This content was produced with the assistance of AI translation services.